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Trade Spotlight | What should investors do with Sterlite Tech, Schneider Electric, and United Breweries on Monday?

GE Shipping is well placed above its 20, 50, 100 and 200-day SMAs, which support bullish sentiments. The daily, weekly and monthly RSI continue to remain bullish as well, along with positive crossover, which supports sustained strength

April 25, 2022 / 06:39 AM IST
 
 
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The market fell more than a percent on April 22 after gaining over 2.5 percent in the previous two sessions, pulled down by banking & financial services, metal and pharma stocks.

Select FMCG, IT and auto stocks also weighed the market down. The hawkish tone by the US Federal Reserve on a rate hike in May added to the selling pressure.

The Sensex plunged more than 700 points to 57,197, while the Nifty fell over 200 points to 17,172 but the broader space did better than the benchmarks.

The Nifty Midcap 100 index declined nine-tenth of a percent and Smallcap 100 index lost a third of a percent on April 22.

Stocks that were in action included United Breweries, which was the top gainer in futures & options segment, rising 4.2 percent to Rs 1,546, and Marathon Nextgen Realty, which was locked in a 10 percent upper circuit at Rs 148.1.

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Sterlite Technologies and Schneider Electric Infrastructure gained for the third consecutive session on April 22 and saw a sharp price spike in a day after a long time. GE Shipping sustained gains for the second straight day on the lines of a rally in shipping and defence stocks.

Sterlite Technologies climbed nearly 14 percent to Rs 235, Schneider Electric Infrastructure gained more than 13 percent to Rs 147 and GE Shipping was up 4.4 percent at Rs 413.

Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:

Sterlite Technologies

On the daily chart, the stock has witnessed a strong trend reversal, representing bullish sentiments. For the past three-four months, the price is consolidating in "Inverse Head & Shoulder" trend reversal pattern with an expected breakout of Rs 237. Hence, any sustainable move above the same may lead to upside momentum.

On April 22, a strong buying momentum was observed from the 50-day simple moving average (SMA-Rs 203), which remains a crucial support zone. Huge volumes were also observed, which signal increased participation.

The daily weekly and monthly relative strength index (RSI) continued to remain in bullish mode along with positive crossover, which supports sustained strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 265-285, with Rs 210-200 as the support zone.

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Schneider Electric Infrastructure

For the past year, the stock has been consolidating within the "rounding formation" pattern (Rs 140-100), however, with strong gains on April 22, the stock confirmed the above-mentioned pattern on a closing basis. This breakout was accompanied by huge volumes, indicating increased participation.

The stock is well placed above its 20, 50, 100 and 200-day SMAs, which reconfirm bullish sentiment. The daily weekly and monthly RSI continue to remain in bullish mode, along with a positive crossover, which supports sustained strength.

The daily and weekly Bollinger ban buy signal indicates rising momentum. Investors should buy, hold and accumulate this stock with an expected upside of Rs 170-185, with the downside support zone of Rs 127-120.

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Marathon Nextgen Realty

The short to medium-term trend remains bullish as the stock is forming a series of higher tops and bottoms. The stock recaptured its 20-day SMA and rebounded sharply. The daily weekly and monthly RSI continue to remain bullish along with a positive crossover, which supports sustained strength.

The stock is on verge of its past four years' "multiple resistance" zone of Rs 148 levels. The weekly Bollinger band buy signal indicates rising momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 180-200, with the downside support at Rs 120-105.

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United Breweries

The short-term trend continues to be bullish. The stock has recaptured its 20, 50, 100 and 200-day SMAs, indicating a strong comeback of bulls. This buying momentum is coupled with huge volumes, which supports increased participation.

The stock is on the verge of six-month down-sloping trendline breakout of Rs 1,600, hence any sustainable move above the same may see United Breweries move towards Rs 1,680-1,750.

The daily and weekly RSI continue to remain bullish mode along with positive crossover, which supports sustained strength. Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,700-1,750, with downside support at Rs 1,450.

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GE Shipping

On the daily time frame, the stock has see "rounding bottom" breakout around Rs 380 on a closing basis. This breakout is accompanied with huge volumes, an indication of increased participation in the rally.

The stock is placed well above its 20, 50, 100 and 200- day SMAs, which support bullish sentiment. The daily, weekly and monthly RSI continue to be bullish along with a positive crossover, which support sustained strength. The weekly band Bollinger - buy signal indicates rising momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 450-485, with the downside support zone of Rs 385-370.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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